IEE grades the ERS of Texas a "D" - Pension Politics
01.05.2023

IEE grades the ERS of Texas a “D”

Voted in direct conflict with own published proxy voting policy

Voted with activists on five out of seven shareholder proposals, but voted against the lone proposal on climate issues. IEE scores ERS of Texas a 3.5 on Directors and 3.0 on outside proposals for a composite of 3.3 which equals a D.

Objectives of this voting

The right to vote proxies for securities held by the Employees Retirement System of Texas (“ERS”) has economic value, and the fiduciary act of managing ERS’ securities includes the management of voting rights appurtenant to those securities. In voting proxies, ERS shall consider only those factors that relate to the economic value of ERS’ investment, and such votes should be cast in accordance with ERS’ economic best interest. In the case of overlapping or conflicting interests within the fund (e.g., ERS ownership of both equity and debt securities), Staff will consider all holdings and seek to maximize the expected value of the combined position.

The right to vote proxies for securities held by the Employees Retirement System of Texas (“ERS”) has economic value, and the fiduciary act of managing ERS’ securities includes the management of voting rights appurtenant to those securities. In voting proxies, ERS shall consider only those factors that relate to the economic value of ERS’ investment, and such votes should be cast in accordance with ERS’ economic best interest. In the case of overlapping or conflicting interests within the fund (e.g., ERS ownership of both equity and debt securities), Staff will consider all holdings and seek to maximize the expected value of the combined position.

The objective of this policy is to provide direction in voting proxies in a manner that gives the most benefit to the participants and beneficiaries of ERS and is consistent with the stated goals and objectives of ERS.

The objective of this policy will be accomplished by voting proxies:

  • To ensure that management and boards of directors are acting in the best interest of ERS as a shareholder;
  • To ensure compliance with all local laws and regulations of countries in which the company does business; and
  • To ensure accountability to shareholders, board responsiveness, board independence and director competence.

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